CapitaLand Ascott Trust (CLAS) is the first lodging trust to secure an OCBC 1.5°C loan. With this S$165 million sustainability-linked multi-currency revolving credit facility, CLAS will receive interest rate reductions upon meeting the agreed annual greenhouse gas (GHG) emissions reduction targets. Proceeds of the facility will be utilised for general corporate purposes.

CLAS’ GHG emissions reduction targets are aligned with its sponsor CapitaLand Investment’s (CLI) 2030 Sustainability Master Plan. CLI has committed to achieve Net Zero emissions by 2050 for its Scope 1 and 2 GHG emissions, and targets to reduce absolute Scope 1 and 2 GHG emissions by 46% by 20301. These targets have been validated by the internationally recognised Science Based Targets initiative (SBTi) in 2022 to be in line with a 1.5°C trajectory, in alignment with the goals of the Paris Agreement.

The OCBC 1.5°C loan reflects OCBC’s longstanding commitment to support its customers on their Net Zero journeys with market-leading transition advisory and innovative financing solutions. There is increasing interest in this financing solution, reflecting the heightened momentum in the global Net Zero movement as well as the Bank’s active engagement with clients on their decarbonisation ambitions. As at 30 June 2024, OCBC’s sustainable financing loans had grown 33% from a year ago, and total sustainable financing loan commitments stood at S$63.3 billion.

At CLAS, sustainability is a key focus and priority in everything we do. It is integrated throughout our business, including our capital management strategy. Leveraging CLAS’ leadership in sustainability, we are able to dovetail our environmental efforts with our financing needs. With this facility, CLAS has secured a total of over S$700 million in sustainable financing to date. We continue to collaborate with like-minded stakeholders in the banking and finance industry to do good, as we deliver long-term value to our Stapled Securityholders. Ms Serena Teo, Chief Executive Officer of CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte. Ltd. (the Managers of CLAS)
We are pleased to support CLAS and its decarbonisation ambitions with our OCBC 1.5°C loan. We launched this financing solution last year to incentivise corporates to set and work towards clear carbon emissions reduction targets aligned with internationally recognised, science-based Net Zero decarbonisation pathways for their sectors. Despite macroeconomic challenges, it has been very encouraging to see more companies across various sectors in the region chart out their Net Zero journeys and setting SBTi-aligned decarbonisation targets. For those companies that are not quite as advanced yet, we have been actively engaging them on their transition plans and viable next steps to take. We are committed to support their Net Zero ambitions and the shift to a low-carbon future. Ms Elaine Lam, Head of Global Corporate Banking, OCBC

As at May 2024, CLAS has greened 51% of its global portfolio (by gross floor area), higher than its target to green 50% of its portfolio by 2025, and is on track to green 100% of its portfolio by 2030. At the end of 2023, CLAS also made significant progress towards its decarbonisation goals, reducing its absolute Scope 1 and 2 emissions by 15.5% and achieved a 6.9% reduction in energy consumption intensity against its 2019 baseline. CLAS was named the ‘Global Sector Leader (Listed – Hotel)’ in the 2023 GRESB Real Estate Assessment for the third consecutive year. CLAS remains steadfast as it progresses towards its sustainability goals as it grows as a trust.

OCBC continues to partner with clients and industry stakeholders to support and accelerate the Net Zero transition for the built environment sector. A recent initiative is the partnership with decarbonisation tech and investment platform Carbonless Asia on the Hong Kong Green Tech Challenge – Green Building Edition. As a Strategic Partner for the Challenge, OCBC will provide financial, technical and regulatory/compliance expertise to the Challenge participants as they develop innovative solutions for the use cases.

OCBC also co-authored the world’s first global practical guide on sustainable finance for the built environment, through the Singapore Green Building Council and with an alliance of leading international Green Building organisations. Titled “Financing Transformation: A Guide to Green Building for Green Bonds and Green Loans,” the guide outlines how various green building certification and rating systems can comply and align with global classification and bond frameworks, aligning with OCBC’s own sustainable financing practices for the sector.

1. Using 2019 as the base year

About The Ascott Limited

Since pioneering Asia Pacific's first international-class serviced residence with the opening of The Ascott Singapore in 1984, Ascott has grown to be a trusted hospitality company with more than 940 properties globally. Headquartered in Singapore, Ascott's presence extends across more than 220 cities in over 40 countries in Asia Pacific, Central Asia, Europe, the Middle East, Africa, and the USA.

Ascott's diversified accommodation offerings span serviced residences, co-living properties, hotels and independent senior living apartments, as well as student accommodation and rental housing. Its award-winning hospitality brands include Ascott, Citadines, lyf, Oakwood, Quest, Somerset, The Crest Collection, The Unlimited Collection, Preference, Fox, Harris, POP!, Vertu and Yello; and it has a brand partnership with Domitys. Through Ascott Star Rewards (ASR), Ascott's loyalty programme, members enjoy exclusive privileges and offers at participating properties.

A wholly owned business unit of CapitaLand Investment Limited, Ascott is a leading vertically-integrated lodging operator. Harnessing its extensive network of third-party owners and in-market expertise, Ascott grows fee-related earnings through its hospitality management and investment management capabilities. Ascott also expands its funds under management by growing its sponsored CapitaLand Ascott Trust and private funds.

For more information on Ascott's industry record of 40 years and its sustainability programme, please visit www.discoverasr.com/the-ascott-limited. Connect with us on Facebook, Instagram, TikTok and LinkedIn.

About CapitaLand Investment Limited

Headquartered and listed in Singapore, CapitaLand Investment Limited (CLI) is a leading global real estate investment manager (REIM) with a strong Asia foothold. As at 30 September 2023, CLI had S$133 billion of real estate assets under management, and S$90 billion of real estate funds under management (FUM) held via six listed real estate investment trusts and business trusts, and more than 30 private vehicles across Asia Pacific, Europe and USA. Its diversified real estate asset classes cover retail, office, lodging, business parks, industrial, logistics and data centres.

CLI aims to scale its FUM and fee-related earnings through fund management, lodging management and its full stack of operating capabilities, and maintain effective capital management. As the investment management arm of CapitaLand Group, CLI has access to the development capabilities of and pipeline investment opportunities from CapitaLand's development arm.

As a responsible company, CLI places sustainability at the core of what it does and has committed to achieve Net Zero carbon emissions for scope 1 and 2 by 2050. CLI contributes to the environmental and social well-being of the communities where it operates, as it delivers long-term economic value to its stakeholders.

Visit http://www.capitalandinvest.com/ for more information.